Not eligible for a tax credit? Competitive policies can be found off the exchange

12:53 PM, February 19, 2014

Free Press Medical Writer

Related Links

By far, the biggest draw to the Michigan Health Insurance Marketplace and other state exchanges is tax credits that, for many Americans, can help reduce premiums and out-of-pocket expenses by up to thousands of dollars each year.

But what if you’re not eligible for those savings?

Jeff Oliver, 27, was pleasantly surprised when he began researching plans off the exchange with the help of a broker.

For about $10 a month more than his policy last year — about $178 — the caregiver at a group home and a part-time detention officer in Waterford said he has dental and vision now though United Healthcare. His old plan, which covered him and his toddler daughter, did not cover either. United sells policies both on and off the marketplace in Michigan.

Suzy Alberts, president of the Michigan Association of Underwriters, said consumers should check out all options to see what’s out there. And even if you don’t purchase a policy on the exchange, it can provide an easy tool to compare policies.

But the exchange doesn’t include policies by those insurers who have chosen not to participate, she noted. Some consumers will find better deals with those insurers.

In Michigan, they include Aetna and HealthPlus of Michigan.

Graham Smith, HealthPlus senior director of business development, said insurers that sell only off the marketplace don’t have to pay extra costs associated with the marketplace and didn’t have to face the same uncertainty of its rollout. Those savings, he said, are passed on to customers, making off-exchanges policies even more competitive.

And the bonus? There were no technical headaches in trying to interface with a troubled federal website and jammed-up call centers.

“For us, it was business as usual,” he said.

HealthPlus still is evaluating whether it will be part of next year’s marketplace, he said.